The Nominal Interest Rate Minus the Expected Rate of Inflation

question 83

Multiple Choice

The nominal interest rate minus the expected rate of inflation ________.

• A) defines the real interest rate
• B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate
• C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate
• D) defines the bank rate

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Definitions:

Ethics Centre

A resource and meeting place that promotes ethical behavior and decision-making within an organization or community.

Ethical Mindfulness

The practice of being consciously aware of the ethical implications and consequences of our actions in everyday life.

Largely Negative

A term describing predominately negative outcomes, perceptions, or attitudes.

Unethically

Acting in a manner that is morally wrong or not in alignment with accepted standards of behavior.